General Employees Retirement Board

OFFICIAL MINUTES OF REGULAR MEETING OF THE STERLING HEIGHTS GENERAL EMPLOYEE’S RETIREMENT SYSTEM Thursday, September 21, 2017 ___________________________________________________________________ __ _ ___ Location: Room #201 40555 Utica Road, Sterling Heights, MI 48313 (586) 446-2331 Acting Chairperson Varney called the meeting to order at 1:30 p.m. BOARD MEMBERS PRESENT: Jennifer Varney, Acting Chairperson Mary Jaganjac, Acting Secretary / Treasurer Todd Marsh, Trustee Paul Henig, Trustee BOARD MEMBERS ABSENT: Richard Weiler, Chairperson (excused) ALSO PRESENT: Walt Hessell, Pension Administrator; Thomas Michaud, Legal Counsel, VanOverbeke, Michaud & Timmony, P.C. APPROVAL OF AGENDA: Motion by Marsh, supported by Henig, to approve the agenda as presented. Ayes: All. Motion carried unanimously. APPROVAL OF MINUTES: Motion by Henig, supported by Jaganjac, to approve the minutes of the regular meeting held August 17, 2017 and the special meeting of September 6, 2017. Ayes: All. Motion carried unanimously. COMMUNICATION FROM CITIZENS: None REPORT FROM LEGAL COUNSEL No formal report. Michaud commented on items as they appeared on the agenda. CONSENT AGENDA: Motion by Marsh, supported by Henig, to receive and file consent items I A through I C-9. Ayes: All. Motion carried unanimously. I. RECEIVE AND FILE: 1  A. Benefit register listing for September 1, 2017 from Comerica Bank showing 363 active retirees with a payout for August 2017 of $909,551.93 and a year-to-date payout of $8,139,111.71. B. Cash and Asset Statements as of August 31, 2017 from Comerica Bank and Morgan Stanley showing a total market value of $110,844,611.37 comprised as follows: Desired Allocation Asset Class / Percentage 0% Cash 0.04% Comerica Bank $ 45,549.35 12% Fixed Income 11.98% Boyd Watterson 13,282,436.17 12% Fixed Income 12.72% WAMCO 14,102,233.90 14% Small Cap 16.67% Earnest Partners 18,474,375.49 4% Large Cap Value 4.16% Confluence 4,606,342.58 4% Large Cap Value 4.14% MFS 4,586,373.73 3% Large Cap Value 2.19% iShares Val Index 2,426,379.45 4% Large Cap Growth 3.56% AMI 3,944,287.68 2% Large Cap Growth 2.11% Winslow 2,343,629.34 3% Large Cap Growth 2.69% Janus Capital 2,984,214.42 2% Large Cap Growth 1.98% iShares Gr Index 2,195,809.11 6% Large Cap Core 6.55% London 7,261,792.38 4% Large Cap Core 4.30% iShares S&P Index 4,767,543.04 10% Large Cap Global 8.80% INVESCO 9,750,149.60 10% Large Cap Global 9.02% Cambiar 9,995,662.92 3% Emerging Markets 1.86% Lazard / HLMEX 2,064,378.58 2% REITS 2.28% Principal REIT 2,525,848.89 5% MLP’s 4.95% Cushing Asset Mgt 5,487,604.74 C. Correspondence 1. Securities Litigation Settlement Reports – July 28 & August 28, 2017. 2. Notices received from Morgan Stanley dated August 2, 2017 regarding changes to accounts for passive index strategy. 3. Letter and email correspondence with Comerica Bank dated August 15, 2017 regarding the deposit of the securities litigation recovery check in the amount of $94.56 from the Monk vs. Johnson & Johnson settlement. 4. Email correspondence to City Clerk dated August 17, 2017 regarding request for assistance – Sterling Heights GERS trustee election. 5. Letter and email correspondence with Morgan Stanley dated August 17, 2017 authorizing the transfer of funds for the payment of benefits. 6. Letter and email correspondence with Morgan Stanley dated August 17, 2017 authorizing the payment of money manager fees. 7. Notice received from Morgan Stanley dated August 18, 2017 confirming the payment of money manager fees to Boyd Watterson. 8. Confirmation notice received from Morgan Stanley dated August 23, 2017 regarding the transfer of funds to pay benefits. 9. Pensions & Investment” magazines dated August 21 & September 4, 2017 REGULAR AGENDA: 2 II. OLD BUSINESS: A. GERS Summary Annual Report (SAR) – Public Act 347 of 2012 Compliance Hessell commented that the SAR had been electronically filed with the State of Michigan Treasury Office and that the report had also been posted to the City website by the Digital Content Coordinator, both procedures which are required by law. The filing requirement for the OPEB valuation pursuant to Section 20h(7) of Public Act 530 of 2016 was also discussed as being a non- issue as retiree health care benefits are not provided by the GERS. Motion by Henig, supported by Jaganjac, to receive and file the GERS Summary Annual Report (SAR) June 30, 2017 which was updated for compliance with Public Act 347 of 2012. Ayes: All. Motion carried unanimously. B. Processing of Pop-Up Election for Yvonne Rolfe Motion by Marsh, supported by Henig, to approve the processing of the pop-up election for retiree Yvonne Rolfe, effective August 7, 2017 (spouse/beneficiary date of death) with a revised monthly benefit of $834.69. Ayes: All. Motion carried unanimously. III. NEW BUSINESS: A. Change in Retiree Status – Howard Bacheller (Deceased) Motion by Henig, supported by Jaganjac, to approve termination of straight life benefits for retiree, Howard Bacheller, due to his death on August 16, 2017. Ayes: All. Motion carried unanimously. B. Change in Retiree Status – Arlene Graham (Deceased) Motion by Marsh, supported by Henig, to approve termination of straight life benefits for retiree, Arlene Graham, due to her death on September 6, 2017. Ayes: All. Motion carried unanimously. C. Application for Service Retirement for Roxanne Reeder, Appraiser III, Office of Assessing Motion by Marsh, supported by Jaganjac, to receive and file the application for service retirement for Roxanne Reeder, Appraiser III, Office of Assessing. Ayes: All. Motion carried unanimously. D. Application for Service Retirement for Denice Gerstenberg, City Development Director, Office of Economic Development Motion by Marsh, supported by Henig, to receive and file the application for service retirement for Denice Gerstenberg, City Development Director, Office of Economic Development. 3  Ayes: All. Motion carried unanimously. E. Pension Administration Comments – Update of Annual Retiree / Beneficiary Verification Hessell stated that compliance as of the meeting date was at 87.5% which was on par with results from prior years. F. Trustee Comments – 2017 Fall MAPERS Conference Update Treasurer Jaganjac attended the recent conference and briefed the Board on some of the session highlights. ADJOURN: Motion by Marsh, supported by Jaganjac to adjourn the meeting at 1:55 p.m. Ayes: All. Motion carried unanimously. Respectfully Submitted, ___________________________________ Mary Jaganjac, Acting Secretary / Treasurer 4